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>Because the stock you buy may not have been actually bought by your broker The stock did get bought by your broker. That's why gme's stock skyrocketed and bro

by Aunche 5y ago

>Because the stock you buy may not have been actually bought by your broker The stock did get bought by your broker. That's why gme's stock skyrocketed and brokers didn't want to trade it. A short interest over 100% doesn't imply naked shorting. If you're borrowing a stock, you can lend it out to someone else. It's like a sublease. There are two leases for a single apartment.

tartoran 5y ago
And lots of naked shorts, inexistent shares sold by private market makers such as Citadel were deployed to suppress the price. Also don’t forget about dark pools and other tricks done to suppress the price action that are done shamelessly behind the scenes. Perhaps cryptos have become so successful over time because this type of manipulation is harder to pull off but that doesn’t make cryptos safer either. If it wasn’t for the high inflation rate I would not touch the market even with a 10 foot pole.
- gruez 5y ago
  >Also don’t forget about dark pools and other tricks done to suppress the price action that are done shamelessly behind the scenes. can you elaborate on this? What tactics were used, and how did they "suppress the price action"? Moreover, how do they compare with "let's screw over hedge funds by driving up the price of a stock!"? AFAIK buying up stocks in a shorted company isn't illegal, but intentionally doing so to cause a short squeeze is, eg. >In 2012, the U.S. Securities and Exchange Commission charged Philip Falcone with market manipulation in relation to a short squeeze on a series of high-yield bonds issued by MAAX Holdings. After hearing that a firm was shorting the bonds, Falcone purchased the entire issue of bonds. He also lent the bonds to the short-sellers, and then bought them back when the traders sold them. As a result, his total exposure exceeded the entire issue of the MAAX bonds. Falcone then stopped lending the bonds, so that short-sellers could not liquidate their positions anymore. The price of the bonds rose dramatically.[16][17] The short-sellers could only liquidate their positions by contacting Falcone directly.[17]

by Aunche 5y ago

tartoran 5y ago

And lots of naked shorts, inexistent shares sold by private market makers such as Citadel were deployed to suppress the price. Also don’t forget about dark pools and other tricks done to suppress the price action that are done shamelessly behind the scenes. Perhaps cryptos have become so successful over time because this type of manipulation is harder to pull off but that doesn’t make cryptos safer either. If it wasn’t for the high inflation rate I would not touch the market even with a 10 foot pole.

gruez 5y ago
>Also don’t forget about dark pools and other tricks done to suppress the price action that are done shamelessly behind the scenes. can you elaborate on this? What tactics were used, and how did they "suppress the price action"? Moreover, how do they compare with "let's screw over hedge funds by driving up the price of a stock!"? AFAIK buying up stocks in a shorted company isn't illegal, but intentionally doing so to cause a short squeeze is, eg. >In 2012, the U.S. Securities and Exchange Commission charged Philip Falcone with market manipulation in relation to a short squeeze on a series of high-yield bonds issued by MAAX Holdings. After hearing that a firm was shorting the bonds, Falcone purchased the entire issue of bonds. He also lent the bonds to the short-sellers, and then bought them back when the traders sold them. As a result, his total exposure exceeded the entire issue of the MAAX bonds. Falcone then stopped lending the bonds, so that short-sellers could not liquidate their positions anymore. The price of the bonds rose dramatically.[16][17] The short-sellers could only liquidate their positions by contacting Falcone directly.[17]